Bill Text: CA AB777 | 2021-2022 | Regular Session | Amended

California Assembly Bill 777 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: State property: transfer: University of California.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2022-09-28 - Vetoed by Governor. [AB777 Detail]

Download: California-2021-AB777-Amended.html

Amended IN Senate August 16, 2022

Amended IN Senate September 03, 2021

Amended IN Senate August 26, 2021

Amended IN Senate July 08, 2021

Amended IN Assembly May 05, 2021

Amended IN Assembly April 19, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill

No. 777

Introduced by Assembly Member McCarty

February 16, 2021

An act to add Section 67329.51 to the Education Code, and to add Section 14673.12 to the Government Code, relating to state property.

LEGISLATIVE COUNSEL'S DIGEST

AB 777, as amended, McCarty. State property: transfer: University of California.

Existing law authorizes the Department of General Services (department) to dispose of surplus state real property by sale, lease, exchange, sale combined with an exchange, or other manner of disposition authorized by the Legislature, upon terms and conditions and subject to any reservation and exceptions the department deems to be in the best interests of the state. This authorization also declares that the provision of housing for Californians is a goal of the highest priority, and the intent of the Legislature that priority be given in the disposal of surplus state real property to housing for persons and families of low or moderate income.

Existing law requires each state agency, on or before December 31 of each year, to make a review of all proprietary state lands, with specified exceptions, over which it has jurisdiction, to determine what, if any, land is in excess of its foreseeable needs and report thereon in writing to the department. Existing law, the California Public Records Act, requires state and local agencies to make its records available for public inspection, unless an exemption from disclosure applies.

This bill would require colleges, universities, and nonprofit entities, as specified, for projects, as defined, to ensure a skilled and trained workforce is used to complete those projects, including by sending a notice of solicitation to specific entities, requiring contractors and subcontractors to pay prevailing wages to employees, establishing a process to prequalify prime contractors and subcontractors, and providing a monthly compliance report, among other things. The bill would make that compliance report a public record under the California Public Records Act. The bill would define terms for its purposes.

This bill would authorize the department to transfer, without charge, a parcel of property in Sacramento, California, if that parcel is reported as excess, to the Regents of the University of California to be used by the University of California at Davis (UC Davis) for prescribed purposes, including using the majority of the property to provide affordable housing, as described. The bill would require UC Davis to reimburse the department for all actual costs incurred as a result of the transfer, as described, and all actual costs related for early termination of specified contracts, as described.

This bill would also provide that if the Regents of the University of California have not begun a formal planning process within a year of the transfer or indicate that they will not use the parcel for its intended purposes, the parcel shall revert to the department, and would then be reviewed to determine if the land is in excess.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 67329.51 is added to the Education Code, to read:

67329.51.
(a) For projects financed pursuant to Section 14673.12 of the Government Code, participating colleges and universities and participating nonprofit entities shall do all of the following:
(1) At least seven days before issuing a bid solicitation for the project, send a notice of the solicitation that describes the project to the following entities within the jurisdiction of the proposed project site:
(A) Any bona fide labor organization representing workers in the building and construction trades who may perform work necessary to complete the project.
(B) Any organization representing contractors that may perform work necessary to complete the project.
(2) Ensure that all contractors and subcontractors performing work on the project will be required to pay prevailing wages for any proposed construction, alteration, or repair in accordance with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code. All of the following shall occur:
(A) The participating college or university or participating nonprofit entity shall ensure that the prevailing wage requirement is included in all contracts for the performance of all construction work.
(B) All contractors and subcontractors shall pay to all construction workers employed in the execution of the work at least the general prevailing rate of per diem wages, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate.
(C) Except as provided in subparagraph (E), all contractors and subcontractors shall maintain and verify payroll records pursuant to Section 1776 of the Labor Code, and make those records available for inspection and copying as provided therein.
(D) Except as provided in subparagraph (E), the obligation of the contractors and subcontractors to pay prevailing wages may be enforced by the Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, which may be reviewed pursuant to Section 1742 of the Labor Code, within 18 months after the completion of the development, or by an underpaid worker through an administrative complaint or civil action, or by a joint labor-management committee though a civil action under Section 1771.2 of the Labor Code. If a civil wage and penalty assessment is issued, the contractor, subcontractor, and surety on a bond or bonds issued to secure the payment of wages covered by the assessment shall be liable for liquidated damages pursuant to Section 1742.1 of the Labor Code.
(E) Subparagraphs (C) and (D) shall not apply if all contractors and subcontractors performing work on the project are subject to a multicraft building trades project labor agreement that requires the payment of prevailing wages to all construction workers employed in the execution of the project and provides for enforcement of that obligation through an arbitration procedure. For purposes of this subparagraph, “project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.
(3) For projects financed pursuant to Section 14673.12 of the Government Code with onsite construction, alteration, or repair costs totaling twenty-five million dollars ($25,000,000) or more, seek bids containing an enforceable commitment that all contractors and subcontractors performing work on the project will use a skilled and trained workforce to perform any rehabilitation, construction, or alterations work on the project that falls within an apprenticeable occupation in the building and construction trades.
(4) For the purpose of establishing a bidder pool of eligible contractors and subcontractors that satisfy the skilled and trained workforce requirements, establish a process to prequalify prime contractors and subcontractors, including, but not limited to, electrical, mechanical, and plumbing subcontractors. This process shall include, but is not limited to, all of the following requirements:
(A) The participating college or university or participating nonprofit entity shall only accept bids from prime contractors that have been prequalified and listed as eligible contractors.
(B) If the participating college or university or participating nonprofit entity receives at least two bids from prequalified prime contractors, the contract shall be awarded to the lowest qualified bidder and the participating college or university or participating nonprofit entity shall certify to the authority that a skilled and trained workforce will be used to perform all construction work on the development.
(C) If the participating college or university or participating nonprofit entity receives fewer than two bids from prequalified prime contractors, the contract may be rebid and awarded to the lowest responsive bidder without the skilled and trained workforce requirement applying to the prime contractor’s scope of work.
(D) Prime contractors shall only accept bids and list subcontractors from the prequalified list. If the prime contractor receives bids from at least two subcontractors in each tier listed on the prequalified list, the prime contractor shall require that the contract for that tier or scope of work will require a skilled and trained workforce.
(E) If the prime contractor fails to receive at least two bids from subcontractors listed on the prequalified list in any tier, the prime contractor will not require that a skilled and trained workforce be used for that scope of work, and may list subcontractors that do not appear on the prequalified list.
(F) The participating college or university or participating nonprofit entity shall establish minimum qualifications that are, to the maximum extent possible, quantifiable and objective. Only criterion, and minimum thresholds for any criterion, that are reasonably necessary to ensure that any bidder awarded a project can successfully complete the proposed scope shall be used by the project proponent.
(G) All bids submitted by prime contractors and subcontractors shall be sealed, opened in a public process that is open to all bidders and other interested parties, and listed on the participating college’s or university’s or participating nonprofit entity’s internet website.
(H) The Subletting and Subcontracting Fair Practices Act established pursuant to Chapter 4 (commencing with Section 4100) of Part 1 of Division 2 of the Public Contract Code shall apply.
(5) (A) Except as provided in subparagraph (B), provide to the authority on a monthly basis while the development or contract is being performed a report demonstrating compliance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code. A monthly report provided to the authority pursuant to this subparagraph shall be a public record under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) and shall be open to public inspection. A participating college or university or participating nonprofit entity that fails to provide a monthly report demonstrating compliance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code shall be subject to a civil penalty of ten thousand dollars ($10,000) per month for each month for which the report has not been provided. Any contractor or subcontractor that fails to use a skilled and trained workforce shall be subject to a civil penalty of two hundred dollars ($200) per day for each worker employed in contravention of the skilled and trained workforce requirement. Penalties may be assessed by the Labor Commissioner within 18 months of completion of the development using the same procedures for issuance of civil wage and penalty assessments pursuant to Section 1741 of the Labor Code, and may be reviewed pursuant to the same procedures in Section 1742 of the Labor Code. Penalties shall be paid to the State Public Works Enforcement Fund.
(B) Subparagraph (A) shall not apply if all contractors and subcontractors performing work on the development are subject to a multicraft building trades project labor agreement that requires compliance with the skilled and trained workforce requirement and provides for enforcement of that obligation through an arbitration procedure. For purposes of this subparagraph, “project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.
(6) Notify the Department of Industrial Relations within five calendar days of the contract award.
(b) For purposes of this section, the following terms shall have the following definitions:
(1) “Participating nonprofit entity” means an entity within the meaning of paragraph (3) of subsection (c) of Section 501 of Title 26 of the United States Code.
(2) “Project” means the allowable purposes a property may be used for by the University of California at Davis, as referenced in subdivisions (a) and (b) of Section 14673.12 of the Government Code.
(3) “Skilled and trained workforce” has the same meaning as provided in Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.

SECTION 1.SEC. 2.

Section 14673.12 is added to the Government Code, to read:

14673.12.

(a) If the real property located at 4949 Broadway, in the City of Sacramento, is reported as excess pursuant to Section 11011, the Department of General Services may transfer the property, without charge, to the Regents of the University of California to be used by the University of California at Davis for the following purposes:

(1) Affordable housing.

(2) Childcare space.

(3) Academic and research programs.

(4) Ancillary student support services.

(b) The majority of the property shall be used to provide affordable housing, which may include affordable student housing.

(c) The University of California at Davis shall reimburse the Department of General Services for all actual costs incurred as a result of the transfer, including, but not limited to, costs related to executing the transfer, such as title company services, environmental site investigations, legal and consultant expenses, and staff time. The University of California at Davis shall also reimburse the Department of General Services for all actual costs for early termination of contracts, as these relate to the property, for power purchase agreements, energy savings contracts, and electric vehicle service equipment, which include, but are not limited to, termination fees, damages incurred by the provider, staff workload on termination of the contracts, legal fees, and demolition.

(d) If the Regents of the University of California have not begun a formal planning process within a year of the transfer pursuant to subdivision (a), or if the Regents of the University of California indicate that they will not use the property for its intended purposes described in subdivisions (a) and (b), the real property located at 4949 Broadway, in the City of Sacramento, shall revert to the Department of General Services.

(e) If the property reverts to the Department of General Services pursuant to subdivision (d), the property shall be reviewed to determine if the land is in excess pursuant to Section 11011.